SIMI VALLEY : Witness in Urrego Drug Case Released

A key witness in the biggest drug-money laundering case in Ventura County history was released from jail Wednesday because her testimony is no longer needed against her brother-in-law, who pleaded guilty last week to conspiracy to sell cocaine.

The release of Luz Urrego was in accordance with an agreement she reached with prosecutors last July, when she pleaded guilty to possession of drug money in exchange for a promise of leniency if she testified against Otoniel Urrego, 64.

Luz Urrego testified against her brother-in-law in January, but a mistrial was declared when the jury deadlocked. She was scheduled to testify again at Otoniel Urrego’s retrial in September, but his decision to plead guilty last week relieved Luz Urrego of her obligations in the case and justified her release, Deputy Dist. Atty. James Grunert said.

Both Urregos were linked to the seizure of $2.5 million in cash in May, 1989, in Simi Valley and Chatsworth. Luz Urrego was considered by prosecutors to be a minor player in the money laundering operation that involved the shipment of $25 million in two months from Simi Valley to the Medellin cocaine cartel in Colombia, authorities said.

Evidence was presented at Otoniel Urrego’s trial that he monitored the shipment of the drug money from his home near Miami. He was linked to money laundering operations in New York, Chicago and Denver, but his conviction is related only to the Simi Valley operation.

Otoniel Urrego will receive an eight-year prison term when he is sentenced April 23.

His attorney, Deputy Public Defender Todd W. Howeth, said his client pleaded guilty in part because he wanted Luz Urrego to be released from custody as soon as possible.

Luz Urrego, a widow who was married to Otoniel’s brother, Jaime, cried when she testified against her brother-in-law and said he has been like a grandfather to her children.